UrbanClap has raised $50 million in a fresh Series D funding exercise that has taken the total funds raised by the hyperlocal home services startup to $110.7 million. This round was led by Steadview Capital while the existing investor Vy Capital also chipped in with its own contribution. Some of the other investors in the startup include SAIF Partners, Accel Partners and Bessemer Venture Partners besides Ratan Tata.
UrbanClap functions as a platform for its service partners and customers and the funds now raised will be utilized towards further strengthening this setup while improving the skill sets of the frontline employees who offer the services at their customersâ€™ premises. Some focus on the products and technology front will also be part of the revamping exercise, including enhancing the supply chain mechanism for consumables etc. used in their services. There are plans afoot to expand to more Tier 2 cities too, with Chandigarh being added this week. Some of the home-based services offered by UrbanClap include beauty and massage, appliance repair, plumbing, carpentry, cleaning, and painting.
Also included in the plans for use of funds from this fresh raise is a $4 million ESOP for its loyal employees and early angels through secondary sale of shares. Incidentally, the startup had followed a similar ESOP allotment at the time of the Series C funding last year. The company is committed to creating a one million strong team of employees, who it describes as micro-entrepreneurs throughout India and other emerging markets.
UrbanClap last reported a customer base of 3 million and a service professionalsâ€™ base of 100,000 covering eight cities including Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. The company has been reporting favourable financial performance figures paring the losses considerably, while increasing its revenue year-on-year. It has ventured into Dubai, in the meanwhile.
The hyperlocal market is showing some signs of recovery in the recent months following a slowdown last year. It was more of a market being not mature enough to absorb some of the services being offered by these companies, mainly startups. The faster the population in the Tier 2 and 3 cities adopt these services, the higher will be the rate of growth of these startups like UrbanClap.